Best online brokerage
best online brokerage - Investing is an important part of any
responsible financial strategy due to the dangers of inflation and the
historical gains of the stock market. Typically, American stocks have
risen at a rate of approximately10 percent per year, while inflation has
caused idle money to steadily lose its value. By investing your money,
you not only protect it from inflation but also expose it to the upward
momentum of the stock market.
Twenty years ago, investing was difficult and time consuming for the
ordinary consumer. Now, a wide variety of online brokerages make
investing in stocks, bonds, commodities, and a huge variety of other
instruments both easy and economical.
Commissions and fees
Ability to trade a wide variety of instruments
Customer service and support
Commissions and fees
Online brokerages make money by charging you commissions and fees every
time you execute a trade. The introduction of discount online brokers
has drastically reduced the fees consumers pay to invest their money.
Nevertheless, commission scales can vary widely from broker to broker,
and it's important to select an operation that charges competitive fees.
That said, remember that sometimes you get what you pay for! The most
economical company is not always the best online brokerage for your
investing needs. There is frequently a trade-off in customer support and
access to a wide variety of securities that accompanies ultra-cheap
prices.
Ability to trade a wide variety of instruments
One of the best parts about investing online is the ease with which
investors can put their money into not only stocks, but also commodities
(such as gold and oil), bonds (such as Treasury bills), and a wide
variety of other investment instruments. Make sure you select an online
brokerage that will allow you to invest in all of the assets you are
interested.
Let's take gold for example. Just ten years ago gold was selling at
under $300 per ounce. Today it trades at $1,900 per ounce!. While in the
past investing in gold was cumbersome due to the costs of physically
transporting and storing the metal, today ETFs like GLD allow investors
to quickly and easily invest in gold through their online brokerage.
Customer service and support
For a beginning investor, customer service and support could be a major
selling point. Do you need educational services? How about dedicated
24/7 phone line support? Make sure you select an online brokerage that
fits your support needs without being total overkill (remember, in the
end you are paying for it!).
One great way of gauging the level of support provided by a particular
firm is to read online brokerage reviews or check out comparisons of the
major players in the industry.
